- The Protection of Personal Information Act (“POPI”)
- The Consumer Protection Act (“CPA”)
- The New Companies Act
Do you know how these Acts effect your business? Have you updated your business contracts to fully protect your business from the devastating consequences of no fault liability?
If you do not educate yourself you are leaving your business at serious risk.
Both the POPI and the CPA give rights to consumers, your clients. As these are rights, you cannot deny them to your clients. These rights are applicable regardless of what your contracts say. However, your contracts can be updated to take into account the rights to better protect your business.
How do you know if the Acts apply to you?
- If you supply goods or services to consumers (as defined by the CPA) the CPA applies to you.*
- If you collect, process, store and/or use personal information of your clients the POPI applies to you.*
*(with a few exceptions)
Let’s take a closer look at each of these:
The POPI requires you to*:
- Inform your client for what purpose his information is being collected;
- Have his consent before collecting his information; and
- Keep and destroy his information within specified time frames.
Some of the most important provisions of the CPA are*:
- It stipulates the number of days’ notice you must give a consumer before cancelling an agreement;
- It allows the consumer to cancel fixed term agreements by giving you the required notice;
- It introduces consumer rights including:
- The right to fair value, good quality and safety; and
- The right to fair, just and reasonable terms and conditions.
The New Companies Act has expanded the definition of director to include “any person occupying the position of a director… by whatever name designated”. This means that even if you are not a director but your duties are those of a director you fall into the definition of director. The obligations placed on directors in the Act will apply to you. The Act introduces new responsibilities for directors and requires* directors to:
- act in good faith;
- act in the best interest of the company; and
- act with care, skill and diligence.
*These are just some of the requirements as there are too many to list here.
The changes introduced by these Acts are far-reaching and far too many to discuss here. The effect of the Acts on the day to day running of your business will depend on the type of business you run. However, all businesses will be effected by at least one of the Acts.
We can assist you to lift the fog by:
- assessing your business and/or contracts for compliance; and/or
- drafting your business contracts.
We are currently running a special on our business contracts and assessments.
Got a question about any business contract:
Call or email mefor more information.
Cell: 082 567 7496
Email: monicas@yhp.co.za
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